E-commerce has grown in Ghana at least over the last decade. The use of online platforms in transacting business has been on the rise and that aspect of the Ghanaian trade space continues to develop.
As part of the Citi Business Festival 2023, the spotlight was put on Ghana’s retail and consumer market.
The on-air series for Monday, June 19, 2023, had Michael Kottoh, Managing Partner at Konfidants highlighting the changing scene of the Ghanaian retail market.
In that interesting conversation, he described “online is the most exciting face of Ghana’s retail space at the moment” as he touched on how ecommerce is shaping the trends in retail business. Here are some takeaways.
1. Intergrated market systems that build trust
Fraud attributed to classic ecommerce platforms being eliminated through integrated market systems of e-commerce platforms, payment and delivery logistics. Credibility and marketplace integrity now rising to boost consumer confidence. Now there is the emergence of platforms trying to correct the problematic trust deficient between buyers and sellers.
2. Use of social media
Instagram, Facebook and Whatsapp now tailored to enhance business transactions. It is mostly powered Mobile Money and independent delivery logistics complemented by google maps and accessories to connect potential business customers.
3. Emergency of smart low-cost inventory techniques
Business do not have to worry about investing in inventory systems, warehousing. They are not buying space to stock goods but rather product advertising and use of products pre-order modules where goods are sourced directly from the wholesalers and delivered to the buyer. Overall cost of operation now much lower aiding in competitive pricing to increase margins
4. Support services now on the rise
Logistics and delivery business now one of the fastest retail businesses in the country. Owners of motorbikes have found new business in delivery support business.
5. Birth of fintechs
Establishment of payment service providers are now increasing thus supporting online businesses. This is a segment that would not have existed but for the fastest growing online retail business.
6. Changes in advertising industry
There is now a rise in influential marketing. This was previously dominated by celebrities but there is new class who are not celebrities but the people who have positioned themselves as entrepreneurs purposely to attract traffic online. These new online advertisement entrepreneurs represent a whole new line of business category.
7. Side gigs for working professionals
Now, there are a lot of working professionals who sit in offices working but do online retail business on the side during breaks or after work as another source of income to complement salaries.
8. Internationalization
Online trade is opening Ghanaian SMEs to global retailers.